Ask an Advisor: How Much Should Non-High-Earners Aim to Save for Retirement?

Core Insights - There is no universal retirement savings target, but a nest egg of $300,000 can supplement Social Security benefits, necessitating potential adjustments to retirement plans and lifestyle choices [1][2] Retirement Savings Benchmarks - The median retirement savings for households led by individuals aged 55-64 is $185,000, while those aged 65-74 have a median of $200,000, indicating that many Americans are underprepared for retirement [3] Income Generation from Savings - A $300,000 retirement savings could generate approximately $11,700 annually using a safe withdrawal rate of 3.9%, which is deemed sustainable for 30 years if a significant portion of assets is invested in equities [4][5] - Higher savings balances yield greater income; for instance, $400,000 could generate $15,600, and $500,000 could yield nearly $20,000 annually [5]